“For more senior positions, I think it will have less impact because salary is a smaller part of pay,” Alan Johnson, the managing director of the compensation consultancy Johnson Associates, told Insider in an interview.

Still, firms are worried about the legal impact of the rules.

“Maybe the biggest thing is, people are worried about litigation,” Johnson said. They’re wondering, “are we going to get sued over this? Will law firms take advantage of the ambiguities of the law?”

He also said he does expect the new law to have a bigger impact on the workforce at banks as opposed to asset managers.

“I think banks have unique problems because they have so many administrative employees. Many money managers don’t have that many administrative jobs compared to banks,” Johnson said, noting that banks may have tens of thousands of staff in administrative roles whose pay is mostly salary.

Business Insider / November 1, 2022